The U.S. Supreme Court handed Argentina a major setback in its long-running battle with a small group of determined creditors, heightening the risk the country will default for the second time in 13 years, the Wall Street Journal reported today. The justices yesterday rejected Argentina's appeal of a lower-court ruling that said that the country can't make bond payments until it compensates hedge funds that refused to accept restructured debt in the years following Argentina's 2001 default. Because of that earlier ruling, Argentina must decide by the end of the month whether to reach a deal with the holdouts or default on its next debt payment. Argentina's President Cristina Kirchner has refused to negotiate with the holdouts, calling them "vultures." But in an address Monday night, she said that Argentina wouldn't default on its restructured debt and would make its interest payment at the end of June. (Subscription required.)
http://online.wsj.com/articles/u-s-supreme-court-rejects-argentina-appe…
Click here to read the Supreme Court’s ruling: http://www.supremecourt.gov/opinions/13pdf/12-842_g3bi.pdf
For more on the Argentinian debt crisis, the Supreme Court’s ruling and what happens next, make sure to attend ABI’s Cross-Border Symposium on Friday in New York. The program will feature a keynote by James Millstein addressing the topic of Argentina’s debt situation. Millstein is the chairman and CEO of Millstein & Co. During his time as a managing director and the global co-head of corporate restructuring at Lazard, Millstein represented the Republic of Argentina in connection with the exchange offer for its international bond indebtedness. Register here: http://www.abiworld.org/CB14